Import competition and job displacement: A case study of Korean manufacturing industries

This paper investigates the impact of import competition on job displacement in Korean manufacturing industries. Using a regression model for the period of 1993–2003, the empirical results show that import competition raises the job displacement rate in the Korean manufacturing sector but the elasticity is negligible in its magnitude. Worker characteristics, such as gender, age, job tenure, and education level, proved to be significant in determining the displacement rate. Characteristics of displaced workers in high import-competing industries are also investigated based on the survey data. Workers who lost their jobs in these sectors were slightly older, less educated, and had longer job tenure than the workers in the other groups.